SAO PAULO: Automobile production in Brazil edged up in February while sales extended a seasonal slump as early carnival celebrations slowed the industry's recovery.
Vehicle output grew 2.9 percent while sales fell 7 percent in February from January, the national automakers' association said on Tuesday.
Automakers in Brazil produced 217,800 new cars and trucks last month, while sales totaled 249,500 vehicles, according to data released by industry group Anfavea. Auto output tumbled 19.2 percent and sales fell 23 percent in the previous month as part of a seasonal ebb in the industry.
President Dilma Rousseff's government moved aggressively to protect the Brazil auto industry after a sharp consumer slowdown and a strengthening currency hurt manufacturers last year. Brazil hiked taxes on foreign cars and threatened to end a trade deal with Mexico after imports surged 30 percent last year, eroding market share for locally made vehicles.
Brazil's auto output in February was 26 percent lower than a year earlier and sales were down 9 percent, as carnival celebrations came a month earlier. February had two fewer business days this year compared with 2011, when the carnival holiday fell in March.
A fast-growing middle class has made Brazil a key market for the world's biggest automakers, including Italy's Fiat SpA , Germany's Volkswagen AG and US-based General Motors Co and Ford Motor Co.
Fiat regained the top spot in Brazil's auto market in February, selling 55,426 vehicles, a 6.8 percent increase from January. Volkswagen was second, with sales of 50,630 cars and light trucks, down 1.9 percent from the previous month.
GM sold 38,740 vehicles in February, a 26.7 percent drop from January, while Ford sales edged up 1.2 percent to 22,462 cars and light trucks.
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